tags: economics, government, not-tech

On the United States and Sovereign Wealth Funds

[…] the US already has a sovereign wealth fund; it owns a special class of perpetual preferred that is entitled to 21% of any company’s income, with payments held back if the company’s cumulative earnings are below their high-water mark. Granted, that makes corporate income taxes a diversified index fund rather than a more concentrated bet

This I find particularly interesting.

If you want the wealth fund, you may as well raise corporate taxes and then just have that income to utilize. It doesn’t even require any trades!

Thats the glory of it. How efficient.

Because question 0 of the fund is “where does the money come from lol”.

For it to accumulate foeign assets we’d need a rise in export or reduction in consumption of import (which is what Saudi Arabias PIF fund does) they dont want a boom and drop, so it suppresses domestic activity to keep a level curve

It could work for strategic purpose assets or whatever, like buying tin Tok? Or manufacturer restoring?

But you could just raise taxes to get the money lol

Notes from “The Diff”, 2025-02-04, Byrne Hobart

This comes the day after Donald Trump announced the US will have a sovereign wealth fund

We kind of already do man, its called social security

This doesnt work as a format, I should implement footnotes I guess?

Does markdown have footnotes?